Japanese shipping conglomerate Nippon Yusen Kaisha (NYK) will take over the remaining 40.4 percent stake in its majority-owned freight forwarding subsidiary, Yusen Logistics, by March 2018, the two companies announced on Tuesday.
Japanese shipping conglomerate Nippon Yusen Kaisha (NYK) will acquire the remaining 40.4 percent stake of its freight forwarding subsidiary, Yusen Logistics, from minority shareholders, NYK and Yusen announced on Tuesday.
The transaction is valued at JPY 25.6 billion (U.S. $224 million) at JPY 1,500 per share and is expected to be completed by late March 2018.
NYK cited a number of reasons for the acquisition, namely to minimize the impact of market volatility and improve competitiveness. NYK said the company is moving towards an asset-light business model by reducing owned and long-term chartered fleets and expanding short-term chartered vessels and forwarding business, and that fully acquiring Yusen is a key step in this approach. The company said it aims to promote container transport business strategies and expand beyond traditional shipping in order to secure stable freight rate business.
NYK’s long-term vision, under its Transform 2025 plan, is to established two main pillars of business, namely air and ocean freight forwarding, and contract logistics, to meet demands by its global customers for total logistics solutions, the company said Tuesday.
NYK to fully acquire Yusen Logistics
